farmer "extension" payment

[sdtaxman]

I have a farmer that cannot get records together and file by 3/1/15 yet he expects to owe tax. I was thinking of having him send a late 4th quarter 1040es payment to help reduce underpayment estimated tax payments. Will this help with that penalty or not? One time I was told this wouldn't help but I think it should. Any ideas, thank you.

[Roland Slugg]

Yes, it will help a little. When there is an underpayment penalty, it is calculated from the date the payment should have been paid until the date it actually was paid. So if a farmer can't file by March 1st (March 2nd this year), a payment now will reduce the underpayment penalty.